Financial regulators should allow foreign brokers: Treasury

The head of the Federal Treasury says it is important that Australia's financial regulators move with the times, to allow foreign financial services to operate locally.

Ken Henry says the US is taking steps to allow foreign brokers and exchanges to operate there, under the watch of their home regulators.

He says such moves should provide impetus for Australia to act.

"With the financial services industry being so dynamic, it is imperative that Australia's regulatory framework remains competitive, that it remains flexible and responsive to global commercial and regulatory developments," he said.

He says by following in the same direction, Australians would be able to access bigger pools of international capital.

"Accessing competitively priced capital helps with the economic development of Australia, but it also helps Australian businesses to compete globally," he said.

"Australian investors benefit too, from being able to better match their risk appetites to investment opportunities."